Shell CEO Wael Sawan continues to send the right message: returns will take priority over growth as he seeks to close the valuation gap with US peers. While it might not be enough, we believe the key actions accompanying the message, including reduced spending and increased distributions, are positive and crucial steps.
Shell stands to benefit from rising global gas demand and likely strong prices over the next decade, as LNG becomes integral to managing renewable intermittency.
Shell’s large LNG position puts it at risk if renewable power generation grows faster than expected or intermittency issues are solved, meaning natural gas will no longer be needed as a bridge fuel.
|
Metric
|
SHEL
|
XOM
|
BP
|
|---|---|---|---|
Price/Earnings (Normalized) | 10.76 | 19.91 | 10.04 |
Price/Book Value | 1.47 | 2.60 | 3.91 |
Price/Sales | 0.93 | 1.92 | 0.54 |
Price/Cash Flow | 5.36 | 10.41 | 2.92 |
|
Metric
|
SHEL
|
XOM
|
BP
|
|---|---|---|---|
Quick Ratio | 0.98 | 0.74 | 0.77 |
Current Ratio | 1.43 | 1.04 | 1.27 |
Interest Coverage | 8.43 | 59.52 | 4.12 |
|
Metric
|
SHEL
|
XOM
|
BP
|
|---|---|---|---|
Return on Assets (Normalized) | 6.72% | 8.50% | 4.40% |
Return on Equity (Normalized) | 14.47% | 14.95% | 22.25% |
Return on Invested Capital (Normalized) | 10.91% | 12.72% | 10.42% |
|
1-Day Chart
|
Name
|
Price
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|---|
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XOM
| LOCK|ySd&Qv^! | LOCK|>K^S | $674B | |||
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CVX
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| PetroChina Co Ltd Class H
PCCYF
| — | LOCK|ZX! | $297B | |||
| Shell PLC
RYDAF
| — | LOCK|NHJ | $262B | |||
| TotalEnergies SE
TTE
| LOCK|^pZrhxF | LOCK|jN | $186B | |||
| Petroleo Brasileiro SA Petrobras ADR
PBR
| LOCK|Ksq#FK | LOCK|ZN | $132B | |||
| BP PLC ADR
BP
| LOCK|j^h%<Kf | LOCK|>y | $114B | |||
| Equinor ASA ADR
EQNR
| LOCK|XQbgZ& | LOCK|Kbm | $99B | |||
| Eni SpA ADR
E
| LOCK|@#QM<?F | LOCK|$P@ | $78B |
United States